JX Nippon produces first gas from Layang field

Japan’s JX Nippon started commercial gas production from Layang oil and gas field offshore Malaysia on May 28, 2017.

JX Nippon Oil & Gas Exploration Corporation’s subsidiary, JX Nippon Oil & Gas Exploration (Malaysia) Limited, is the operator of Block SK10 offshore Sarawak, Malaysia, with a participating interest of 75%, where the Layang field is located. Petronas is its partner with the remaining 25% interest.

The field is located approximately 7 km east of the producing Helang Gas Field in Block SK10.

Natural gas produced from Layang field, together with natural gas from Helang gas field, will be supplied through subsea pipelines to the MLNG Tiga Sdn. Bhd. liquefaction plant in Bintulu, Sarawak, which is partly owned by JXTG Nippon Oil & Energy Corporation. The natural gas will be sold as LNG after liquefaction to its customers including buyers in Japan.

The initial production of natural gas and condensate from Layang field is estimated about 12,000 boed.

Field development plan for the Layang field, which included an FPSO solution, was approved by Petronas in May 2014 after which the contract for the lease of the FPSO Deep Producer 1 for the Layang field was awarded to Malaysia’s TH Heavy Engineering.

According to available information, the first steel for the Layang FPSO topside was cut in September 2015.